Learn About The Corporate Transparency Act
The Corporate Transparency Act (CTA) broadly covers any corporation, limited liability company or "similar entity" that was created by filing a document with a Secretary of State, Tribal, or similar office. Existing firms will have Federal Income Tax returns demonstrating less than $5,000,000 in gross receipts or sales in the aggregate. Newly formed firms will have to automatically apply. The company will have less than 21 employees. There will be exceptions to this law.
The Corporate Transparency Act (CTA) plans to exclude selected types of companies from filing. For a detailed explanation, click here.
The penalties for non-compliance, such as failing to report or providing false information, include fines of up to $10,000 and a prison term of up to two (2) years for each offense!
The Corporate Transparency Act defines "Company applicant" as an individual who files a document that creates a domestic reporting company or who first registers a foreign reporting company with a Secretary of State, Tribal office, or similar office in the United States. The proposed law also includes any individual who directs or controls the filing of such a document by another person.